Nevada King Gold Corp. (TSX-V: NKG) (OTCQX: NKGFF) announced further assay results from two recently completed holes at its Atlanta Gold Mine project which showed an extension of mineralization in two areas.
It also identified the new West Atlanta Graben target which has thick oxide gold hits including 1.03 g/t au over 181.4 meters and 0.98 g/t au over 163.1 meters.
The Vancouver-based gold firm announced its assay results on Monday from its project at the Battle Mountain Trend located 246 kilometres northeast of the city of Las Vegas, Nevada. The holes adjoin the western end of Section 22-6N and tie to hole AT22HG-17 which returned 164.4 meters grading 0.93 g/t Au from 146.3 meters and bottomed in mineralization.
The results showed extended mineralization a further 50 meters west of AT22HG-17 and tie into a series of Kinross RC angle holes that intersect the section line 40 meters further west from AT22HG-4. This defined a near-horizontal mineralized zone 150 meters wide, ranging from 100 meters to 180 meters thick, and averaging around 1 g/t Au.
This zone is referred to as the West Atlanta Graben Target; it is bound on the east by the West Atlanta Fault and on the west by a newly identified fault called the West Atlanta Fault number 2.
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New target envelope discovered
The discovery of a new target envelope along the West Atlanta Graben has opened up possibilities for resource expansion. The area has a relatively low historical hole density, such as a segment extending 100 meters northward from Section 22-7N and 150 meters westward from the WAF. Only one of the 17 historical drill collars in this segment intercepted mineralization.
Gustavson’s 2020 resource model identified this mineralization as the “Porphyry Resource Component,” but the ground beneath the other 16 holes was not tested, creating a data gap. As a result, the Porphyry Resource zone did not contribute significantly to the overall resource model.
By exploring the western area of the West Atlanta Fault, Nevada King has found a significant opportunity to extend the thick, volcanic-hosted mineralization towards Section Line 22-16N. This new drilling program could substantially increase the resource for the company.
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Drill holes had promising results previously but hadn’t been pursued
Cal Herron, the Exploration Manager of Nevada King, said that although gold mineralization had been established on the western side of the deposit based on historical drilling, it had not been pursued.
A few holes drilled by Meadow Bay in the Northwest Target Zone in 2011-2015 had promising results in terms of higher grades and thicker mineralization, but they seemed unconnected to the rest of the Atlanta resource zone.
However, Nevada King’s drilling in the latter half of 2022 found a different gold deposit in the mineralized volcanic section as they moved westward from the Atlanta Mine Fault Zone and crossed the WAF.
This new mineralization featured thick mineralized intervals averaging between 0.5 g/t and 1.5 g/t Au, with lateral and vertical grade continuity, scattered with high-grade intervals (5 g/t to 20 g/t Au), strong oxidation, and a mineralization style suitable for heap leach extraction.
“As an explorationist, finding thick and homogenous zones of good gold grade not only indicates a strong gold system, but it also allows for more reliable and quicker ounce building,” said Herron in a statement.
“Consequently two RC drills are currently extending our sections westward from the WAF and in-filling large gaps in the historical drill patterns in order to tie this gold zone into the shallower mineralization already drilled along the AMFZ.”
“As we learn more about mineralization in the West Atlanta Graben, we will be able to better vector into higher grade feeder structures. Horace Greeley’s famous adage, ‘Go west young man…’, certainly applies to Atlanta, and that is exactly what Nevada King is doing.”
Nevada King is a large mineral claim holder in Nevada, coming third after Nevada Gold Mines –which is a joint venture by Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) and Newmont Corporation (NYSE: NEM) (TSX: NGT)– and Kinross Gold Corporation (TSX: K, NYSE: KGC),. Since 2016, the company has focused on staking large project areas close to existing or former gold mines along the Battle Mountain trend, which have significant historical exploration work.
These areas were identified based on their potential for multi-million-ounce gold deposits and were staked after a detailed geological evaluation. Nevada King’s portfolio includes several district-scale projects, such as the Atlanta Mine, Lewis, Horse Mountain-Mill Creek, and Iron Point projects, located in various parts of Nevada.
Nevada King stock went up by 4.11 per cent on Monday to $0.38 on the Canadian Ventures Exchange.